Try and get some of the terms correct.BCM Bank Cubic...

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16/05/24

14:43

Post #: 73859174
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Originally posted by coeus12345: ↑

Maybe you genuinely dont understand what I am saying, or your are just posturing to make a point knowing fully that these contract rates do not give you the picture of what the costs will be

The costs assumptions are based on billion cubic meter of overburden removed (OBR).

I have a very detailed model on CKA based on these rates and I will tell you a few insights.

1) if the OBR moves from 20 to 22 - then the total cost of mining increases by $10/t
2) if the OBR is moved just 1 extra km from the mining pit -- then the total cost of mining increases by $10/t
3) if the coal transport is less efficient (haul trucks currently loading half the truck as they cant navigate the road) -- then total cost of mining increases by $20/t
4) if diesel prices increases by 5%, then mining cost increase by $5/t

if all the above are happening -- then mining cost increases by ~US$50/t

IF you have any calculations whatsoever with such granular modeling then please share, otherwise stop speculating and misguiding people here.

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Try and get some of the terms correct.
BCM Bank Cubic Metres.
Strip Ratio SR: BCM per tonne of coal mined.
You would also wonder why company would decide to dump overburden further away from the Pit.
Your move from SR 20 to 22 Adds 2 BCM per tonne of coal.
Diesel prices far enough.
Trucking/hauling a bit silly. The road is being improved. Contract will be cents/tonne/km. Around 14 cents. That includes a road maintenance requirement of 1 to 2 cents per tonne per km. The state of the road is a contractor responsibility. Over time the road will be structurally improved. And from experience, this winding road will be straightened where financially sensible and reduce kms.

CKA Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
11 Upvote

2 Great analysis

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